Facts:

One Participant

Prior Plan existed in 1985-1990-5 Years of Participation

Received distribution payable at 65 in the amount of $3000 per month

New Plan set up in 2003 at age 60 with NRA age 65

Compensation has always been in excess of 200,000

What is maximum benefit permitted at age 65 in new Plan?

1. 160,000-36000 - he gets credit for all participation in prior plan and therefore can accrue 24,800 each of next five years; or

2. 80,000 - can only accrue up to 1/10 of dollar limit (160,000) each of the next five years.

As Power of Attorney for My grandfather I used the Illinois Statutory Short Form for POA to remove the name of my deceased grandmother as beneficiary and named myself as the beneficiary. When my grandfather died I submitted a claim for the burial insurance. The administrator of the ERISA Plan denied my claim citing that Illinois State Law forbid me to name myself as beneficiary.

Does ERISA preempt state law in this case?

Under ERISA can I name myself as beneficiary?

Please help, need answer asap...

I am fully retired from local gov. civil service, and have full access to my 457(b) plan. Will the IRS allow me to "directly rollover" all or part of my 457 funds for the purchase of a life insurance annuity without the exchange being treated as a taxable event ? Isn't an annuity purchase/ exchange via 457 funds considered a lateral transfer to a qualified retirement plan? I would appreciate any help here. Thanks.

One of our church staff members have money deducted from their paycheck to be used toward Health premium. The church pays a portion, they pay a portion. Can anyone confirm that this deduction is not subject to FICA or social security. Thanks.

I have been looking into investing in a few companies that pay dividends and also offer a dividend reinvestment plan. This investment will be in my Roth IRA account. My question is about whether or not these reinvested dividends will be considered a contribution. For example, if I have $500 of reinvested dividends, how will this affect my contribution limit? Will I still be able to make a full contribution, or will my limit be $500 lower. Thank you for any help.

missing the ESOP Association plugs every now and then!

Does anyone have a copy of T-10 table (Crocker, Sarason)?? (that they would be willing to share)

Thanks in advance.

A retirement plan permits retirees to take distributions immediately after retirement rather than waiting for the next valuation date. We usually recommend that less than 100% of the balance based on the prior valuation be distributed just in case there are losses. However, this client permitted 100% of the balance to be distributed based on the prior valuation. Now the next valuation has been completed and they discovered that there was a substantial loss. Naturally, the participant is not going to return the money. Is the employer obligated to make the plan whole?

please explain cost basis on an inkind distribution

Please help. I can't find any guidance about this matter.

First, an individual is now allowed to roll over funds from an IRA to an eligible retirement plan (including a qualified plan or a 403(b) plan).

Second, the beginning date of minimum required distributions from a retirement plan, but not an IRA, can now be delayed until the individual's retirement after age 70-1/2.

My question: What's the correct treatment of IRA funds that have been rolled into the eligible retirement plan? Does the rollover retain its IRA character, and are distributions required to begin at age 70-1/2? Or, does the rollover acquire the properties of the eligible plan, and can distributions be delayed until a later year?

I've found just one bit of guidance about this matter. The Panel (Aspen) Pension Answer Book - 2004 Edition states that "IRS representatives have opined that an IRA owner may roll over funds from an IRA to a qualified retirement plan and delay required minimum distributions until retirement..." But, who are these "IRS representatives", and where have their opinions been circulated? I really need more guidance than this one passing reference.

Thank you.

I need the purchase rates for ages 45, 46 & 47 for the 1971 Group Annuity Mortality Table Projected to 2000 (Male). Help please.

We received a QDRO that says Alt Payee gets 50% of a participant's plan account balance as of 12/31/03. Participant's total account balance as of 12/31/03 was 10,000, including $5,000 of vested 401(k) deferrals and $5,000 of a 50% vested match, so that his vested balance is $7,500.

Do we give the Alt Payee $5,000 and pull it from the participant's vested amounts (the $7500 vested pool) or do we give her $3,750 (50% of his vested balance)?

I know the Alt Payee's amounts must be 100% vested and I know we can't give her more than he had by giving her any of his unvested amounts and just vesting them.

If we give the Alt Payee $5,000 (50% of total account, vested and unvested), where do we pull it from? All from his 401(k) deferrals or do we pull a portion from his vested match?

Can a participant of a Sec. 125 plan that offers health insurance premiums as a nontaxable benefit, include COBRA payments withheld from the participant's pay for premiums on behalf of a dependent who was dropped from the employer's plan as a result of no longer being a full-time college student?

In an non-ERISA 403b plan, is adp/acp testing required?

A 2 parnter, 0 ee LLC's profit sharing contribution reduces income applied towards the SE tax. Why doesn't a Sole Pro's PS work the same way?

Also, since the sole props profit sharing does not reduce schedule C income (reported on page 1 of 1040) why would we use the 20% circular formula? Since the contribution is not a deduction towards SE why couldn't we use 25% of schedule C income?

Say you have an age weighted PS plan. The plan never gets to the average benefits test. And gateway doesn't apply.

Now you add a 401(k) plan. And let's assume that it is a safe harbor nonelective, so there are employer contributions that are not 401(k) or (m) contributions.

Does this move the age weighted plan into having to pass the test for gateway?

2 businesses, A and B

Company A:

Dave 50% owner

Dave's dad 50% owner

Company B:

Dave 49% owner

Dave's wife 51% owner - Dave considered 100% owner, attribution

Controlled group? I dont think so (hashes out with someone), comments welcome

Company A is going to put in place a Simple (has other EEs). Can Company B establish a Solo 401 for Dave and his wife (no other EEs)?

Although the DOL has not finalized the automatic rollover regulations, I was wondering how recordkeepers are planning to administer these rules. For example, if the qualified plan is being recordkept by a large financial services company (ie - Fidelity, Vanguard, T Rowe, Putnam), will the participant's cash out be moved to an IRA with that financial institution?

What about those recordkeepers that are not financial institutions (ie - Hewitt, TPA's, etc) - - who will be the IRA recipient for cash out from those plans?

Thanks.

This is not my area of expertise....so I would appreciate any and all input I can get from you experts out there!

We have a client that purchased a business. The client does not sponsor a Section 125 plan, but the business it purchased does. What needs to be done in this situation? Do the Contolled Group rules (as in the case of qualified plans) pertain to 125 plans?

Thank you.